State, Congress in a cage fight over eggs

In this 2011 file photo, chickens stand in California's only enriched colony system that gives them a darkened area for nesting at the JS West farm in Atwater. An Iowa congressman objects to the idea that California's law giving caged chickens more room applies to eggs produced in other states.JILL BENSON, AP

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WASHINGTON – Call it a cage fight.

Members of Congress are fiercely debating whether California can, in effect, regulate the business practices of other states, in this case, the size of the cages that hens live in, if those hens are laying eggs that will eventually be sold in California.

Depending on which way the argument is settled, California consumers could face either a period of lower egg supply and higher prices, or an abundance of eggs at cheap prices, industry trade groups say. The California egg industry, too, is watching closely because its future is on the line.

The imbroglio is all part of the farm bill – better known for food stamps and farm subsidies – now being discussed in a House-Senate conference committee reconciling Senate and House versions of the bill.

The egg flap dates to 2008, when California voters approved Proposition 2, which required California hens be housed in cages that are big enough for them to spread their wings without touching each other.

In 2010, the state Legislature applied this standard to all eggs sold in California, no matter where the producer is located. The new regulations are scheduled to go into effect in 2015 – but not if Rep. Steve King, R-Iowa, has his way.

King, who represents the leading egg-producing state in the nation, added an amendment to the House farm bill that would prohibit states from requiring other states to follow their regulations. King argues that Iowa egg producers, who supply one-third of California’s imported eggs, shouldn’t need to follow California law to sell their products in the state. The proposal is written broadly enough that it could potentially affect many agricultural products, not just eggs.

Where it stands

California members of the conference committee, including Reps. Ed Royce, R-Fullerton, and Jeff Denham, R-Modesto, are working to ensure the language doesn’t make it into the final bill. King’s amendment is in the House bill; the Senate bill does not have the provision.

King, though, is on the conference committee and arguing forcefully that “no state should be allowed to regulate production in other states.” Aides describe the ongoing discussions as heated.

The committeeaims to work out a compromise by year’s end, on not just this issue but food stamps and agricultural subsidies as well. If their work isn’t completed, dairy prices could skyrocket in the New Year.

If it passes: Damaged producers, cheap eggs

King’s amendment “will have a devastating effect on egg farmers in California,” said Arnie Riebli, co-owner of Sunrise Farms in Petaluma. Riebli’s farm has 1 million hens and produces 5 million to 6 million eggs a week.

Out-of-state producers would be able to “sell eggs for a cheaper price than we can. We have to offer the double-the-space for our chickens,” Gary West of JS West and Companies, an egg farm in Modesto, told the Register.

West said it costs about $15 per hen to upgrade to the newer, spacious cages. He has about 1.8 million chickens on two farms; so, the expense has been “considerable.”

The cheap, out-of-state eggs will have a market advantage, Rayne Pegg of the California Farm Bureau said. California egg farmers, she said, will be asking, “Can I stay in this business?”

If it fails: Counting your chickens

California relies on egg imports from other states, and West said that without imports, California would be short about half its egg consumption. “We’re going to need more eggs. We can’t produce enough,” he said.

Related Links

In this 2011 file photo, chickens stand in California's only enriched colony system that gives them a darkened area for nesting at the JS West farm in Atwater. An Iowa congressman objects to the idea that California's law giving caged chickens more room applies to eggs produced in other states. JILL BENSON, AP
In this 2008 file photo, Jill Benson, vice president of JS West and Companies, surveys one of the company's egg processing plants in Atwater. Since then, California has adopted new standards allowing more room for hens. MARCIO JOSE SANCHEZ, AP
This 2010 file photo shows one of the chicken confinement sites operated by Wright County Egg in Galt, Iowa. Iowa produces more eggs than any other state, and a congressman there doesn't want the state to be bound by California regulations. RYAN J. FOLEY, ASSOCIATED PRESS

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